A state-level financial watchdog group says fraud in government benefit programs expanded sharply during the Biden administration because of weak controls and relaxed oversight.
OJ Oleka, CEO of the State Financial Officers Foundation, said fraud became more widespread when eligibility rules were loosened and government benefit programs became easier to access. He argued that the problem is now deeply embedded in parts of the system.
Oleka said state financial officers are working to strengthen oversight, recover taxpayer money and prevent public funds from being misused.
According to the group’s 2025 Oversight Report, affiliated state financial officers protected and returned $28 billion to taxpayers last year. The report said officials uncovered $5.7 billion in waste, fraud and abuse, while also generating or returning another $22.3 billion through investment earnings and unclaimed property programs.
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Oleka described fraud as an “industry” inside government programs and said officials are trying to root out what he called a “fraud industrial complex.”
He argued that weak eligibility requirements allowed people who were not qualified for benefits to access taxpayer-funded programs. He said some states expanded access too broadly without enough safeguards to prevent abuse.
The Trump administration has made fraud prevention a major priority. President Donald Trump appointed Vice President JD Vance to lead a nationwide anti-fraud effort after several high-profile cases raised concerns about misuse of federal funds.
Oleka praised the administration’s approach and said state financial officers are ready to work with federal officials to recover funds and strengthen program integrity.
He said long-term reform will require continued action beyond one administration. The State Financial Officers Foundation is also working with members of Congress, including House Oversight Committee Chairman James Comer, and state officials to keep the issue on the national agenda.
Oleka pointed to fraud cases in several states, including Minnesota, California, Maine and Ohio. He said those cases show how weak oversight can allow large amounts of taxpayer money to be misused.
In California, officials uncovered a multimillion-dollar hospice fraud scheme. In Maine, a health services company was accused by a whistleblower of misusing Medicaid funds. In Ohio, hundreds of home health companies reportedly billed the federal government more than $250 million in Medicaid spending while sharing addresses or operating from questionable locations.
Oleka said taxpayers should not be forced to pay for fraud, especially when the money is meant to support people who truly need assistance.
He also argued that fighting fraud is connected to lowering costs for Americans, because waste and abuse add pressure to government budgets and public resources.
The group says state financial officers will continue pushing for stronger oversight, tighter eligibility rules and better safeguards to protect taxpayer dollars.
Today, Assistant Attorney General Colin McDonald announced criminal charges against 15 defendants in Minnesota for fraud schemes that targeted OVER $90 MILLION in taxpayer dollars.
This is just the beginning of our work in Minnesota⬇️ pic.twitter.com/pdrXxxuLiN
— National Fraud Enforcement Division (@DOJFraudDiv) May 21, 2026
